Statutory Sick Pay for UK Employers: How It Works
This explainer is for UK employers. Statutory Sick Pay changed in April 2026: it now starts on the first day of sickness and covers every employee, whatever they earn. Here is how SSP works now, how to calculate it, what evidence to ask for, and how to budget for it in a small business.
Key takeaways
- Since 6 April 2026, SSP is paid from the first day of sickness. The old waiting days have gone.
- The Lower Earnings Limit no longer applies, so all employees qualify regardless of earnings.
- The weekly rate is the lower of £123.25 or 80% of the employee's average weekly earnings, for up to 28 weeks.
- Employees self-certify for the first 7 days; after that you can ask for a fit note.
- There is no general scheme to reclaim SSP, so budget for it as a business cost.
For years, Statutory Sick Pay had two features that small employers knew well: three unpaid "waiting days" at the start of each sickness, and an earnings threshold that left lower-paid staff with nothing. Both went on 6 April 2026, as part of the Employment Rights Act 2025, which received Royal Assent on 18 December 2025.
The result is simpler rules but a higher cost for many employers, especially those with part-time or lower-paid staff. This guide explains the current system for the 2026/27 tax year. It is general information, not legal or payroll advice. Rules and rates change, so check GOV.UK or speak to an employment or payroll adviser for your situation. If you are self-employed and wondering about your own sick pay, that is a different topic covered in our guide for the self-employed.
What changed in April 2026
Two changes reshaped SSP from 6 April 2026:
- No waiting days. SSP is now payable from the first day an employee is off sick, rather than from the fourth.
- No earnings threshold. The Lower Earnings Limit no longer applies to SSP. Every employee qualifies regardless of how much they earn.
To keep things fair for people on low pay, the weekly amount is now the lower of a flat rate or a percentage of earnings. That means a low earner receives SSP that reflects what they normally get, rather than more than their usual pay.
| Feature | Before 6 April 2026 | From 6 April 2026 |
|---|---|---|
| When SSP starts | After waiting days | First day of sickness |
| Who qualifies | Only employees earning at least the Lower Earnings Limit | All employees, regardless of earnings |
| Weekly amount | A flat weekly rate | Lower of £123.25 or 80% of average weekly earnings |
| Maximum length | Up to 28 weeks | Up to 28 weeks |
Who gets SSP and for how long
SSP is for employees who are too ill to work. With the earnings limit gone, that includes part-time staff, people on low hours and those whose pay varies. It is paid for up to 28 weeks in a period of sickness. After that, the employee may be able to claim state benefits instead, and you will need to give them the right paperwork. GOV.UK explains what to provide when SSP ends.
Some groups have different rules, for example employees receiving statutory maternity pay. If you are unsure whether someone qualifies, check the SSP employer guide on GOV.UK or your payroll software's guidance before you decide not to pay.
Common mistake
Using last year's rules in a payroll spreadsheet. If your template still skips the first three days of sickness, or excludes low earners, you will underpay SSP. Update any manual calculations and confirm that your payroll software applied the April 2026 changes.
How to calculate SSP
Your payroll software should do the calculation, but it helps to understand the logic.
- Work out average weekly earnings. This is based on the employee's earnings over a set reference period before they fell sick. GOV.UK sets out the exact method, and payroll software applies it.
- Take 80% of that figure. This is the earnings-related cap.
- Compare with £123.25. The weekly SSP is whichever is lower.
- Convert to a daily rate. SSP is paid for the days the employee would normally have worked, so divide the weekly amount by the number of days they usually work in a week.
- Pay it through payroll. SSP goes through PAYE like normal pay, with tax and National Insurance deducted where due.
Worked example
Imagine two made-up employees at a small cafe. Priya works full time and her average weekly earnings are £480. 80% of that is £384, which is higher than £123.25, so her SSP is £123.25 a week. Tom works two short shifts and his average weekly earnings are £100. 80% of that is £80, which is lower than £123.25, so his SSP is £80 a week. Under the old rules Tom might not have qualified at all; now he does, from his first day off sick.
Evidence: self-certification and fit notes
For the first 7 days of sickness, employees self-certify. That means they tell you they are ill, and you can ask them to complete a self-certification form or a simple absence record. You cannot insist on a doctor's note for this period.
After 7 days, you can ask for a fit note. Fit notes can be issued by doctors and certain other healthcare professionals. A fit note may say the employee is not fit for work, or that they may be fit for work with adjustments such as shorter hours or lighter duties. If it suggests adjustments, talk to the employee about what is possible.
Pro tip
Write a short sickness absence policy and share it on day one: who to call, by what time, how to self-certify and when a fit note is needed. A clear, consistent process is fairer for staff and makes your payroll records easier to keep.
Budgeting for SSP in a small business
Employers pay SSP themselves. There is no general scheme that lets small employers recover it from the government, so treat it as a normal employment cost. Day-one payment and the wider eligibility mean more absences now trigger a payment, so it is worth planning ahead.
- Build a sickness allowance into your staffing budget. Use your own past absence records as a guide rather than guessing.
- Decide whether you pay more than SSP. Some employers offer company sick pay on top. If you do, write the terms in contracts or the employee handbook, and remember SSP is the legal minimum.
- Plan cover. Cross-train staff on key tasks so one person's absence does not stop the business.
- Look at patterns, kindly. Return-to-work conversations help you spot health issues, workload problems or the need for adjustments.
Managing absence fairly
Day-one SSP does not change how you should manage sickness; it just makes good habits more valuable. Most small employers deal with absence informally, which works well as long as you are consistent.
Keep contact supportive
Agree in your policy how and when you will keep in touch during a longer absence, such as a short call once a week. The aim is to check how the person is, share any news they need and plan a return, not to pressure them back early.
Hold a short return-to-work chat
After each absence, a five-minute conversation lets you confirm the dates for payroll, ask whether anything at work contributed, and discuss any adjustments suggested in a fit note. Do it for everyone, so nobody feels singled out.
Take advice on long-term or repeated absence
Long-term sickness or frequent short absences can involve disability discrimination rules and a duty to consider reasonable adjustments. Before you take any formal step, follow your written policy, keep notes, and get advice from Acas or an employment adviser.
Records and payroll reporting
Keep records of sickness absence, the SSP you paid and the evidence you received, alongside your other payroll records. Payroll records should be kept for 3 years. SSP appears on the employee's payslip and is reported to HMRC through your normal Full Payment Submission. Sickness information is health data, so store it securely and limit who can see it under UK GDPR.
SSP action checklist
- Confirm your payroll software applies day-one SSP and no earnings limit
- Update any manual spreadsheets or templates
- Check you calculate the lower of £123.25 or 80% of average weekly earnings
- Write or update your sickness absence policy
- Set up a self-certification form for the first 7 days
- Ask for fit notes after 7 days and act on suggested adjustments
- Budget for SSP as a business cost
- Store sickness records securely for at least 3 years
Frequently asked questions
Does a part-time employee on very low pay get SSP?
Yes. Since 6 April 2026 the Lower Earnings Limit no longer applies, so all employees can qualify. The amount is the lower of £123.25 a week or 80% of their average weekly earnings.
Can I reclaim SSP from HMRC?
There is no general scheme for employers to recover SSP. Plan for it as a cost of employing people, and check GOV.UK in case the rules change.
Do I have to pay SSP from the first day?
Yes, from 6 April 2026 waiting days were removed, so SSP is payable from the first day of sickness for an eligible employee.
Can I ask for a doctor's note on the first day?
For the first 7 days employees self-certify. You can ask for a fit note after that. Your own policy can ask staff to report sickness promptly and complete a self-certification form.
Related reading
The bottom line
Statutory Sick Pay is now simpler and wider: it starts on the first day of sickness, covers every employee regardless of earnings, and pays the lower of £123.25 a week or 80% of average weekly earnings for up to 28 weeks. You pay it yourself, with no general way to reclaim it.
Check that your payroll software has the new rules, write a clear absence policy, budget for sickness as a normal cost, and keep tidy, private records. When a case is unusual, check GOV.UK or ask an adviser before you decide.
